Business

IREDA Raises $300 Million In Masala Bonds

Indian Renewable Energy Development Agency Launched Green Masala Bond At London Stock Exchange To Raise $300 Million

03:43 PM (Beijing Time) - 04. October 2017

IREDA finances renewable energy projects across India, mainly hydro, wind and solar, like this 50 MW solar PV project in Kerala. It plans to use the proceeds from the Green Masala Bond to finance renewable energy projects (Photo Credit: IREDA)

Key Takeaways

IREDA of India has listed its Green Masala Bonds for a period of 5 years to raise $300 million

It has become the fourth Indian entity to issue green bonds at the London Stock Exchange

These bonds carry a coupon of 7.125% and carry certification from the Climate Bonds Initiative

IREDA will use the proceeds to finance renewable energy projects across India

The Indian Renewable Energy Development Agency (IREDA) raised around 19.5 billion INR ($300 million) for a five-year Green Masala Bond launched at the London Stock Exchange (LSE). This is the first Green Masala Bond on LSE’s new International Securities Market (ISM). Green Masala Bonds are available only for overseas investors and not to investors from the originating country.

IREDA will use the proceeds to finance renewable energy projects across India.

The bonds carry a coupon of 7.125% and are certified by Climate Bonds Initiative (CBI), an international, investor-focused not-for-profit building transparent assurance frameworks around green bond investment.

“Indian Renewable Energy Development Agency (IREDA) is fully committed to helping achieve Indian Government’s vision of 175 GW renewable energy capacity by 2022,” said Chairman and Managing Director of IREDA, Kuljit Singh Popli. Adding, “The Green Masala Bond is a significant milestone for IREDA in this regard, as we embark on the next phase of renewable and sustainable energy led expansion.”